Reference no: EM131376202
1. Consider a consumer who consumes two goods: education (e) and money (m) spent on all other goods. The price of education is 50 while the price of money is 1. Her income is 10,000.
a. Write her budget constraint and draw the budget line in a diagram with education as the horizontal axis and money as the vertical axis.
Suppose the government would like to increase the "welfare" of this consumer by subsidizing education.
b. Consider first the proposal that increases her income from 10,000 to 15,000 (for example, by introducing a program like the earned income tax credit). Let's call this policy as the cash transfer program. Write her new budget constraint and draw the new budget line in a diagram similar to a.
c. Consider an alternative program that simply gives the consumer 100 units of education (for example, the Pell grant program that provides grants that can be spent only on education). Let's call this as the in-kind transfer program. You might have noticed that the two programs have the same cost. Write the consumer's new budget constraint in this case and draw the budget line in a diagram.
d. Draw the budget lines for the above two programs in the same education-money diagram. Your answers to the questions below will rely on this diagram.
d1. Illustrate a case in which the consumer's rational choices from the two programs are the same (so that the consumer is equally well-off under the cash transfer and in-kind transfer program).
d2. Illustrate a case in which the consumer's rational choice from the cash transfer program lies on a higher indifference curve than her rational choice from the in-kind transfer program (so that she prefers the cash transfer to the in-kind transfer program).
d3. Argue that her rational choice from the in-kind transfer program cannot lie on a higher indifference curve than her rational choice from the cash-transfer program.
|
Enormous amount of money
: Observing that Kodak is making an enormous amount of money from their film salesand the owners of Kodak are becoming very rich, the government imposes a tax of $0.50per roll of film.
|
|
Create an erd from information described using chen model
: Each equipment type is associated with a single manufacturer that is referenced by a unique two-digit manufacturer ID number. You have been hired to assist Foothills Athletics to create an ERD from the information described here using the Chen mod..
|
|
Find a business continuity or disaster recovery article
: Research on the general internet or in the University Library and find a Business Continuity or Disaster Recovery article online relating to records recovery, data (anything regarding to d/r and data - including data loss) OR workstations. Summari..
|
|
Construct the appropriate dummy variable
: Since Gender is a categorical variable, construct the appropriate dummy variable in column E to indicate gender as female = 1 and male = 0. You must use an "IF" statement in the appropriate cell(s) to indicate the correct dummy value based on gen..
|
|
Proposal that increases her income
: Consider first the proposal that increases her income from 10,000 to 15,000 (for example, by introducing a program like the earned income tax credit). Let's call this policy as the cash transfer program. Write her new budget constraint and draw ..
|
|
How the manager in an agile organization may use
: Compare and contrast the advantages and disadvantages to the planning function and explain how the manager in an agile organization may use both to his or her advantage.
|
|
Develop an erd from the business rules mentioned here
: A ski or snowboard need not be assigned to any customer. Your job is to develop an ERD from the business rules mentioned here.
|
|
Define the completeness axiom
: Define the completeness axiom. Give a verbal explanation of a situation where the consumer's preferences are incomplete.
|
|
How does language difference lead to misunderstanding
: how does language difference lead to misunderstanding and frustration? b) Give an example, a time or an incident, from your experience or anecdote you heard that exemplifies this. c) Describe and/or explain how your example demonstrates this stumb..
|